Northport council approves retail incentive program

NORTHPORT | Business owners and developers who want the city to reimburse them for infrastructure improvements will now go through a formal process that the City Council approved Monday night.

The city of Northport already pays business owners and developers a percentage of the money they spend to improve roads and water and sewer lines. Reimbursements are negotiated on a case-by-case basis as they are brought to the council.

The retail incentive program the council adopted Monday night formalizes the process.

"It's a pretty straightforward process and procedure that will allow us to make sound, fiscally responsible decisions," said Alan Harper, the city's director of economic development.

The incentives will be offered to new and existing business that redevelop their property.

The purpose of the incentive program is to attract new types of businesses to Northport, Harper said. Reimbursements would be repaid to the businesses with new or increased sales taxes.

"I think it's going to work very well," said City Administrator Charles Swann.

The council's goal is to attract businesses that offer products not available at existing businesses or offer products that are not available "under one roof." Harper used Target and Home Depot as examples.

Councilman Robert Thomas said he is glad the agreement will apply to existing businesses as well as new ones.

"I've always felt like you strengthen what remains," he said. "Some of these buildings have fallen into ill-repair, and the businesses don't have the funds to make the improvements."

Harper, however, said that the agreement is aimed at newer businesses.

"We're interested in developing new sales tax dollars in Northport and primarily going to consider those new retailers, in name or in product, to receive the incentives," Harper said.

For a business or developer to receive the sales tax incentive, it would submit an application and a $250 fee to Harper. If the application is accepted, negotiations about the size of the reimbursement would begin. The business or developer would be required to apply before making the improvements and provide certification about what was done upon completion of the upgrades.

The businesses could be approved to receive reimbursements through the city or the Downtown Redevelopment Authority, which was formed to offer specific sales-tax incentives for proposed retail redevelopment projects that locate in the downtown central business district or other areas of the city predominantly used for business and commercial use.